From now on, the Qatar Investment Authority (QIA) will be part of every renewable project developed by ENEL Green Power in Sub-Saharan Africa. That comes after the two get into an agreement to start financing, building, and operating the projects jointly in the future. The first phase will be about capacities around 800 MW. The total number of projects comprises two in operation and the other two under construction. Three are in South Africa, whereas one is in Zambia. The agreement means that QIA will acquire half of Enel Green Power’s stake in all of the projects.
For the transaction to be complete, relevant regulatory authorities and institutions will give the go-ahead in the form of antitrust clearance. There will also be room for the change of control approval. This agreement will also lead to the formation of a legal entity involving the two, which will be their vehicle in Sub-Saharan Africa’s future projects. Then, it will become a single joint venture firm eventually.
According to Francesco Starace, Enel CEO, both parties have things to bring to the table. They include investment strategies and developing, engineering, constructing, operating, and maintaining renewable plants. Equally important, their targets as far as decarbonization and sustainability are not far apart and are put into consideration in the new arrangement. Mansoor bin Ebrahim Al-Mahmoud, the QIA CEO, added that their vision is mutual, making it feel right to collaborate with Enel.
As far as the agreement is concerned, Enel will be in charge of project development and acquiring necessary regulatory approvals. Once Enel achieves the two, the joint venture will invest in the developed projects. Once the joint venture does that, it takes the responsibility of funding and constructing renewable projects.
Some of the joint venture projects are two operating projects, Ngonye PV plant of 34 MW power rating and Nxuba wind farm of 148 MW power rating in Zambia and South Africa, respectively. Others are incomplete, such as Soetwater, Karusa, Garob, and Oyster Bay, with power ratings of 147 MW, 147 MW, 145 MW, and 148 MW, respectively. All four projects under construction are expected to start operating before the end of 2021.
Nevertheless, Enel Green Power will not have to surrender 50% of stakes in other projects. Excellent examples are South African projects with capacities of up to 500 MW. Some of them are wind farms such as Gibson Bay and Nojoli, with power ratings of 111 MW and 88 MW. Others are solar plants, including Paleishuewel (82.5MW), Tom Burke (66MW), Pulida (82.5MW), Upington (10MW), and Adams (82.5MW).https://loshijosdelamalinche.com/